Publication - Advice and guidance
Guidance on the operation of Local Authority Housing Revenue Accounts (HRAs) in Scotland
Guidance relating to the role of Housing Revenue Accounts (HRA).
Appendix 1
Table 1, Appendix: 1 HRA chargeable expenditures comparison
| Schedule 15 Housing (Scotland) Act 1987 | Service Expenditure (Objective) Analysis | Scottish Government ( SG) HRA Statistical Return | ||||
|---|---|---|---|---|---|---|
| Actual text of legislation | Plain English version | CIPFA coding | Divisions and subdivisions | SG coding | Categories of HRA expenditure recorded by Scottish Government Statistical Return | |
| Reference | 1. Loan charges | 1209 | Depreciation and impairment of fixed assets | 1.0 | Loan charges | |
| Section | (a) the loan charges which the local authority are liable to pay for that year 'in respect of money borrowed by a local authority for the purpose of: | Capital and interest payments on outstanding HRA debt | 10740 | Depreciation and impairment - dwellings | 1.1 | Debt principal |
| (i) the provision by them after 12th February 1919 of housing accommodation under the enactments referred to in paragraph | New build council housing | 10741 | Depreciation and impairment - hostels | 1.2 | Debt interest | |
| (ii) the provision or improvement by them of dwellings in 'accordance with improvement proposals approved by the 'Secretary of State under section 2 of the Housing (Scotland) Act 1949 c. 61 1949 or under section 105 of the Housing (Scotland) Act 1950 or 1950 c. 34. 'under section 13 of the Act of 1968 | Capital improvements to existing housing | 10742 | Depreciation and impairment - all other HRA assets. | 1.3 | Debt management expenses | |
| (iii) meeting expenditure on the repair of houses and other property to which the account relates | Capital repairs to HRA properties | |||||
| (iv) the improvement of amenities of residential areas under section 251 on land to which the account relates, | Capital expenditure on residential amenities (but included at a time when estates were predominantly council estates and not multi-tenure) | |||||
| (v) the alteration, enlargement or improvement under section 2(3) of any house | Capital works (alteration, enlargement or improvement under section 2(3) of any house) | |||||
| 2. Supervision and management | 1206 | Supervision and management | 2.0 | Supervision and management (with sub-divisions of dwellings, hostels and other HRA properties) | ||
| Section | (c) the expenditure incurred by the local authority for that year in respect of the repair, maintenance, supervision and management of houses and other property to which the account relates, other than the expenditure incurred by them in the administration of a rent rebate scheme; | Supervision and management of HRA property excluding the administration of housing benefit which is General Fund expenditure | 10715 | Policy and management | 2.1 | Records of properties and tenants |
| 10716 | Managing tenancies | 2.2 | Waiting lists and application processing | |||
| 10733 | Rent collection and accounting | 2.3 | Lettings, tenancy agreements and transfers | |||
| 10738 | Special services | 2.4 | Rent collection and accounting | |||
| 10739 | Hostels | 2.5 | Advice services to actual or prospective council tenants | |||
| 2.6 | Property insurance | |||||
| 2.7 | Caretaking | |||||
| 2.8 | Cleaning | |||||
| 2.9 | Grounds maintenance | |||||
| 2.10 | Management of planned maintenance or modernisation programmes e.g. SHQS | |||||
| 2.11 | Administration of repair requests from tenants | |||||
| 3. Repairs and maintenance | 1205 | Repairs and maintenance | 3.0 | Repairs and maintenance (with sub-divisions of dwellings, hostels and other HRA properties) | ||
| Section | (c) the expenditure incurred by the local authority for that year in respect of the repair, maintenance, supervision and management of houses and other property to which the account relates, other than the expenditure 'incurred by them in the administration of a rent rebate scheme; | Repair and maintenance of HRA property excluding the administration of housing benefit which is General Fund expenditure | 10712 | Responsive | 3.1 | Planned repairs and improvements: to maintain current property standards (eg. re-painting, replacing windows) |
| 10713 | Planned | 3.2 | Responsive repairs as requests arise (eg. to fix a broken window) | |||
| 10735 | Void repairs | 3.3 | Void repairs to make property suitable for reletting | |||
| 10736 | Special services | 3.4 | Running costs and maintenance of shared services: heating, lighting, lifts, concierge schemes. | |||
| 10737 | Hostels | 3.5 | Staff costs for third-party tradesman carrying out repairs and other similar expenditure such as recharges to the HRA from trading operations | |||
| 4. Rent arrears and void rent losses | 1210 | Bad or doubtful debts | 4.0 | Movement in allowances for bad debts | ||
| Section | (e) the arrears of rent which have been written off in that year as irrecoverable, and the income receivable from any houses to which the account relates during any period in that year when they were not let | Rent arrears written off (rent arrears being still being pursued are not charged to the HRA until they are declared written off) and rents not collected due to voids | 10743 | Increase/reduction in provision. | 4.1.1. | Dwellings - Movement in allowances for bad debts |
| 4.1.2 | Hostels - Movement in allowances for bad debts | |||||
| 4.1.3 | Other HRA properties - Movement in allowances for bad debts | |||||
| 5. Taxes, feuduties, rents and other charges | 1211 | Rent, rates, taxes and other charges | 5.0 | Other expenditure | ||
| Section | (b) the taxes, feuduties, rents and other charges which the local authority are liable to pay for that year in respect of houses and other property to which the account relates; | Council tax, water charges and other charges of empty HRA properties that are charged by the Council | 10744 | Lease rentals | 5.1 | Expenditure on housing stock which is no longer available for letting, such as that awaiting demolition (security etc.) |
| 10745 | Vacant properties: council tax | 5.2 | Costs associated with the maintenance of shops, lock-ups, garages etc. held on the HRA. | |||
| 10746 | Vacant properties: rent | 5.3 | Costs incurred on owner-occupied stock which should be re-charged to the HRA | |||
| 10747 | Irrecoverables | 5.4 | Council tax on void properties, rents and rates. | |||
| 10748 | Rates and water charges payable on nondwellings. | 5.5 | Rebates for protected tenants on housing support | |||
| 5.6 | Other miscellaneous payments that are not part of the normal upkeep of properties, or normal dealings with tenants. | |||||
| 6. Direction from Scottish Ministers | ||||||
| Section | (g) such other expenditure incurred by the local authority as the Scottish Ministers direct shall be debited to the housing revenue account | Any expenditure not listed above that is directed by Scottish Ministers | ||||
Table 2, Appendix: 1 HRA income comparison
| Schedule 15 Housing (Scotland) Act 1987 | Service Expenditure (Objective) Analysis | Scottish Government ( SG) HRA Statistical Return | |||||
|---|---|---|---|---|---|---|---|
| Actual text of legislation | Plain English version | CIPFA coding | Divisions of service (Mandatory) | Subdivisions of service (Discretionary) | SG coding | Categories of HRA expenditure recorded by Scottish Government Statistical Return | |
| Reference | 1. Rental income | 1. Dwelling rents (Gross) | 6.0 | Rental income from lettable dwellings | |||
| Section | (a) the income receivable by the local authority from standard rents; | This is rents from houses, garages, shops, land and any other assets | 6.1 | Gross rents | |||
| 6.2 | Loss of rents from voids | ||||||
| 6.3 | Net rent income | ||||||
| 2. Other income relating to taxes and service charges | 2. Non-dwelling rents (Gross) | 7.0 | Rental income from Hostels | ||||
| Section | (b) any income receivable by the local authority for that year in respect of service charges, supplementary charges, feuduties and any other charges in respect of houses and other property to which the account relates; | Other income which does not come from standard rents | (a) Garages | 7.1 | Gross rents | ||
| (b) Shops | 7.2 | Loss of rents from voids | |||||
| (c ) Rental from land | 7.3 | Net rent income | |||||
| 3. Housing Support Grant | 3. Housing support grants | 8.0 | Rental income from other HRA assets/properties | ||||
| Section | (c) the housing support grant payable to the local authority for that year; | Housing Support Grant was a revenue grant paid by Scottish Government that was paid to local authorities who had difficulty balancing their HRA. It was abolished from April 2013. | (a) Housing support | 8.1 | Gross rents | ||
| (b) Hostel support | 8.2 | Loss of rents from voids | |||||
| 8.3 | Net rent income | ||||||
| 5. Investment income | 4. Leasehold service charges | 9.0 | Service charges to tenants | ||||
| Section | (g) income, and receipts in the nature of income, being income or receipts arising for that year from the investment or other use of money carried to the account; | This includes interest on any cash balances in the HRA plus income from any HRA investments | 10.0 | Government Grants ( HSG and Hostels) | |||
| 10.1 | Housing support grant | ||||||
| 10.2 | Hostel grant | ||||||
| 6. Direction from Scottish Ministers | 5. Charges for welfare services | 10.3 | Other government grants | ||||
| Section | (i) such other income of the local authority as the Scottish Ministers may direct | Any income not listed above that is directed by Scottish Ministers to the HRA | 11 | Interest received | |||
| Section | (5) For any year, the local authority may, with the consent of the Secretary of State, carry to the credit of the account, in addition to the amounts required by the foregoing provisions of this Schedule, such further amounts, if any, as they think fit. | Any income not listed above that local authorities wish to go to the HRA but only with Scottish Ministers consent | 7. Other income | 12 | Other income | ||
| 12.1 | Non-rental income relating to hostels | ||||||
| 12.2 | Payments from owner occupiers which are credited to the HRA. | ||||||
| 12.3 | Commissions, legal fees etc. | ||||||
| 6. Hostels | |||||||
| 8. Sums directed by Scottish Ministers that are income in accordacne with IFRS | |||||||
Table 3 Chartered Institute of Public Finance and Accountancy
| Service Expenditure (Subjective) Analysis | |
|---|---|
| Code | Divisions and subdivisions |
| 501 | Employees |
| 5001 | Direct employee expenses |
| 5002 | Indirect employee expenses |
| 5003 | Contributions to employee-related provisions |
| 5004 | Debits relating from soft loans - employees |
| 502 | Premises-related expenditure |
| 5005 | Repairs, alterations and maintenance of buildings |
| 5006 | Energy costs |
| 5071 | CRC allowances |
| 5007 | Rents |
| 5008 | Rates |
| 5009 | Water services |
| 5010 | Fixtures and fittings |
| 5011 | Apportionment of expenses of operational buildings |
| 5012 | Cleaning and domestic supplies |
| 5013 | Grounds maintenance costs |
| 5014 | Premises insurance |
| 5015 | Contributions to premises-related provisions |
| 503 | Transport-related expenditure |
| 5016 | Direct transport costs |
| 5017 | Recharges |
| 5018 | Contract hire and operating leases |
| 5019 | Public transport |
| 5020 | Transport insurance |
| 5021 | Car allowances |
| 5022 | Contributions to transport-related provisions |
| 504 | Supplies and services |
| 5023 | Equipment, furniture and materials |
| 5024 | Catering |
| 5025 | Clothes, uniform and laundry |
| 5026 | Printing, stationery and general office expenses |
| 5027 | Services |
| 5028 | Communications and computing |
| 5029 | Members' allowances |
| 5030 | Expenses |
| 5031 | Grants and subscriptions |
| 5032 | Private Finance Initiative and Public Private Partnership schemes |
| 5033 | Contributions to provisions |
| 5034 | Miscellaneous expenses |
| 505 | Third party payments |
| 5035 | Independent units within the council |
| 5036 | Joint authorities |
| 5037 | Other local authorities |
| 5038 | Health authorities |
| 5039 | Government departments |
| 5040 | Voluntary associations |
| 5041 | Other establishments |
| 5042 | Private contractors |
| 5043 | Other agencies |
| 5044 | Transport operators (in respect of concessionary fares) |
| 5045 | Debits relating from soft loans - third party payments |
| 506 | Transfer payments |
| 5046 | Schoolchildren and students |
| 5047 | Adult Social Services clients (Social Work clients in Scotland) |
| 5048 | Housing benefits |
| 5049 | Debits relating from soft loans - transfer payments |
| 507 | Support services |
| 5050 | Finance |
| 5051 | IT |
| 5052 | Human Resources |
| 5053 | Property Management/Office Accommodation |
| 5054 | Legal Services |
| 5055 | Procurement Services |
| 5056 | Corporate Services |
| 5057 | Transport Functions |
| 508 | Depreciation and impairment losses |
| 5058 | Depreciation |
| 5059 | Revaluation losses |
| 5060 | Loss on impairment of assets |
| 5061 | Amortisation of intangible fixed assets |
| 5062 | Movement in fair value of investment property |
| 509 | Income |
| 5063 | Government grants |
| 5064 | Other grants reimbursements and contributions |
| 5065 | Customer and client receipts |
| 5066 | Interest |
| 5067 | Recharges |
| 5068 | Credits resulting from soft loans |
| 510 | Capital financing costs |
| 5069 | Interest payments |
| 5070 | Debt management expenses |
Table 4 Appendix 1: CIPFA Service Expenditure Analysis for housing-related activities
| General Fund Revenue Account Scotland 2012-13 and 2013-14 Final | |||
|---|---|---|---|
| Divisions and subdivisions | |||
| 108 | Housing Services | ||
| 1069 | Housing strategy | ||
| 1122 | Registered social landlords | ||
| 1071 | Housing advice | ||
| 1072 | Housing advances | ||
| 1073 | Private sector housing renewal | ||
| 10360 | Administration of renovation and improvement grants | ||
| 10192 | Renewal activity | ||
| 10361 | Control orders | ||
| 10362 | Closing orders | ||
| 10363 | Slum clearance (unsubsidised) | ||
| 10364 | Slum clearance (subsidised). | ||
| 1075 | Homelessness | ||
| 10201 | Hostels (non- HRA support) | ||
| 10202 | Bed/breakfast accommodation | ||
| 10365 | Leasehold dwellings | ||
| 10209 | Other temporary accommodation | ||
| 10366 | Homelessness administration. | ||
| 1076 | Housing benefits payments | ||
| 10367 | Rent allowances paid | ||
| 10214 | Non- HRA rent rebates | ||
| 10368 | Discretionary additions in respect of HRA rebates. | ||
| 1123 | Rent rebates | ||
| 10369 | Rent rebates | ||
| 1077 | Housing benefits administration | ||
| 10370 | Rent allowances | ||
| 10371 | Rent rebates | ||
| 1124 | Contribution to the HRA | ||
| 1079 | Other council property | ||
| 10218 | Travellers' sites | ||
| 10372 | Non- HRA council property. | ||
| 1125 | Welfare services | ||
| 1126 | Housing support services (supporting people) | ||
| 10373 | Administration and commissioning costs |
||
| 10374 | Payments to providers. | ||
Contact
Email: HRA Guidance
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